FAILURES OF SUPERVISORY BODIES AND RATING AGENCIES IN MORTGAGE CRISIS ESCALATION

The financial crisis is a result of the irresponsible business policy of the relevant state institutions for the financial market control (the US Federal Reserve and the US Security and Exchange Commission) and the lack of competence of rating agencies, as well as fundamental weaknesses that have existed for years in the area of financial control and regulation in the United States. The mentioned weaknesses originate in the idea of unlimited liberalization of financial markets, with minimal regulation and weak business control of the investment banks and funds.